Education Department to Temporarily Reduce Student Loan Interest Rate

The outstanding federal student loan balance totaled over $1.6 trillion in February, with nearly 43 million student borrowers holding loan debt.

The Department of Education building in Washington on April 28, 2025. Madalina Vasiliu/The Epoch Times

The Education Department announced on Thursday a 1 percent reduction in federal student loan interest rates for borrowers enrolled in automatic payments starting next month.

The interest rate reduction will apply to student loan borrowers who are already enrolled in autopay or who enroll by Sept. 30, and will take effect from July 1 through June 30, 2028, according to the department’s statement.